Merger of two airport ground handlers given provisional green light
The Competition and Markets Authority (CMA) has provisionally cleared Menzies Aviation’s takeover of part of Airline Services’ business after an in-depth investigation allayed competition concerns
The two firms supply airlines in the UK with a variety of support services, including the de-icing of aircraft and ground handling.
An initial probe raised concerns that the merger could restrict choice for airlines at a number of key airports for both de-icing and ground handling, potentially leading to higher prices or a worse service.
These concerns led to the merger being referred to a group of independent CMA panel members for a more indepth investigation.
However, the CMA said today that ‘based on a thorough evaluation’ of the wider evidence, it has found that the market for ground handling services is particularly dynamic, with a strong recent history of companies entering the market to compete for contracts.
"With regard to de-icing services, the CMA has found that competition between Menzies and Airline Services is very limited such that the merger would not lead to a substantial lessening of competition."
The CMA is inviting comments on its findings until January 9. It will then consider any submissions it receives before reaching a final decision, the deadline for which is January 28.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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